Diversified Royalty (TSE:DIV) Stock Passes Above 50-Day Moving Average - Time to Sell?

Key Points

• Diversified Royalty Corp.'s stock has recently surpassed its 50-day moving average, trading at C$3.63 with a high of C$3.64 on Wednesday.
• Analysts have raised their price targets for the stock, with an average target price now at C$3.70 and an overall rating of "Buy."
• The company announced a dividend of $0.0229 per share, representing a yield of 760.0%, to be paid on September 29th.

Shares of Diversified Royalty Corp. (TSE:DIV - Get Free Report) passed above its 50 day moving average during trading on Wednesday . The stock has a 50 day moving average of C$3.38 and traded as high as C$3.64. Diversified Royalty shares last traded at C$3.63, with a volume of 131,768 shares traded.

Wall Street Analysts Forecast Growth

DIV has been the subject of several research analyst reports. CIBC lifted their price objective on Diversified Royalty from C$3.10 to C$3.20 and gave the stock a "neutral" rating in a research report on Thursday, June 19th. Raymond James Financial lifted their price objective on Diversified Royalty from C$3.40 to C$3.60 and gave the stock an "outperform" rating in a research report on Thursday, June 19th. Finally, Desjardins lifted their price objective on Diversified Royalty from C$3.75 to C$4.00 in a research report on Thursday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, Diversified Royalty presently has an average rating of "Buy" and an average target price of C$3.70.

Diversified Royalty Price Performance

The firm has a market capitalization of C$615.89 million, a P/E ratio of 22.69 and a beta of 0.87. The business has a 50-day moving average of C$3.38 and a 200 day moving average of C$3.05. The company has a current ratio of 4.28, a quick ratio of 1.74 and a debt-to-equity ratio of 90.70.

Diversified Royalty Announces Dividend

The company also recently announced a sep 25 dividend, which will be paid on Monday, September 29th. Investors of record on Thursday, September 18th will be given a $0.0229 dividend. This represents a yield of 760.0%. The ex-dividend date of this dividend is Monday, September 15th. Diversified Royalty's payout ratio is presently 157.53%.

Diversified Royalty Company Profile

Diversified Royalty Corp is a multi-royalty company. It is engaged in the business of acquiring royalties from multi-location businesses and franchisors in North America. As a part of the investment strategy, the firm always purchases trademarks of the companies it is going to acquire. The company gives its partners the benefit of full operational control of their business, participation in the growth of their company, and tax deductibility on royal payments.

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